The objects of this Act are -
| b) | to provide for the auditing of institutions and accounting entities in the public sector; |
| 4) | Constitutional functions |
| 1) | The Auditor-General must audit and report on the accounts, financial statements and financial management of - |
| a) | all national and provincial state departments and administrations; |
| b) | all constitutional institutions; |
| c) | the administration of Parliament and of each provincial legislature; |
| e) | all municipal entities; and |
| f) | any other institution or accounting entity required by other national or by provincial legislation to be audited by the Auditor-General. |
| 2) | The Auditor-General must audit and report on the consolidated financial statements of- |
| a) | the national government as required by section 8 of the Public Finance Management Act; |
| b) | all provincial governments as required by section 19 of the Public Finance Management Act; and |
| c) | a parent municipality and all municipal entities under its sole or effective control as required by section 122 (2) of the Municipal Finance Management Act. |
| 3) | The Auditor-General may audit and report on the accounts, financial statements and financial management of- |
| a) | any public entity listed in the Public Finance Management Act; and |
| b) | any other institution ... which is- |
| i) | funded from the National Revenue Fund or a Provincial Revenue Fund or by a municipality; or |
| ii) | authorised in terms of any legislation to receive money for a public purpose. |
| 1) | The Auditor-General may, at a fee, and without compromising the role of the Auditor-General as an independent auditor, provide - |
| a) | The Auditor-General may, at a fee, and without compromising the role of the Auditor-General as an independent auditor, provide audit related services to an auditee ... or other body, which is commonly performed by a supreme audit institution on condition that - |
| i) | no services may be provided in respect of any matter that may subsequently have to be audited by the Auditor-General; |
| ii) | such service will not directly result in the formulation of policy; and |
| iii) | there must be full and proper disclosure of (the categories of such services in the report annually submitted by the Auditor-General to the National assembly). |
| d) | carry out an appropriate investigation or special audit of any institution ... , if the Auditor-General considers it to be in the public interest or upon the receipt of a complaint or request. |
| 11) | Application of this Part |
This Part applies to all audits of auditees which the Auditor-General -
| a) | must perform in terms of section 4 (1) or (2); or |
| b) | opts to perform in terms of section 4 (3). |
| 1) | The Auditor-General, after consulting the oversight mechanism, must determine - |
| a) | the standards to be applied in performing audits ... |
| b) | the nature and scope of such audits; and |
| c) | procedures for the handling of complaints when performing such audits. |
| 3) | The Auditor-General may - |
| a) | make different determinations on the matters mentioned in subsection (1) for different categories of audits based on recognised best practice; or |
| b) | issue specific directives on those matters in any specific case. |
| 14) | Submission of financial statements |
| 2) | Financial statements submitted by an auditee which is not subject to the Public Finance Management Act or the Municipal Finance Management Act, must be submitted within the period, be in a format, contain the information and otherwise comply with any requirements determined - |
| a) | by any legislation applicable to that auditee; or |
| b) | in the absence of such legislation by the Auditor-General. |
| 15) | General auditing powers |
| 2) | The Auditor-General or an authorised auditor may for the purpose of an audit - |
| b) | direct a person to produce, or to deliver at a specified place and time and in a specified format- |
| i) | any such document, book or written or electronic record or information ... |
| 2) | An audit report must reflect such opinions and statements as may be required by any legislation applicable to the auditee which is the subject of the audit, but must reflect at least an opinion or conclusion on - |
| g) | whether the annual financial statements of the auditee fairly present, in all material respects, the financial position at a specific date and results of its operations and cash flow for the period which ended on that date in accordance with the applicable financial framework and legislation ... |
| h) | the auditee's compliance with any applicable legislation relating to financial matters, financial management and other related matters ... |
| i) | the reported information relating to the performance of the auditee against predetermined objectives. |
| 3) | In addition, the Auditor-General may report on whether the auditee's resources were procured economically and utilised efficiently and effectively. |
| 25) | Appointment of auditors |
| 1) | If the Auditor-General has opted not to perform the audit of an auditee - |
| a) | the Auditor-General must give notice of his or her decision to that auditee before the start of the auditee's financial year for which the appointment is to be made; and |
| b) | the auditee must appoint as its auditor a person registered in terms of the Auditing Profession Act as an accountant and auditor and engaged in public practice as such. |
| 2) | Before appointing an auditor in terms of subsection (1), the auditee must give notice of the suggested appointment to the Auditor-General, including information on the extent to which the auditor would provide other services than audit services during the duration of the appointment, and any other information required by the Auditor-General. |
| 3) | If the Auditor-General, within 14 days of receiving a notice in terms of subsection (2), or such longer period as may be agreed to. rejects the auditee's appointment, the auditee must in terms of that subsection recommence the process to appoint another person as its auditor. |
| 4) | Appointments in terms of this section may not be for a longer period than one financial year of the auditee. |
| 1) | An auditee ... may discharge an auditor ... before the expiry of that auditor's term of appointment, but only with the consent of the Auditor-General and, if that auditee has an executive authority, also of the relevant executive authority. |
| 2) | If such an auditee intends discharging an auditor in terms of subsection (1), it must- |
| a) | give the auditor notice, in writing, setting out the reasons for the discharge; and |
| b) | give the auditor an opportunity to make representations, in writing, to the Auditor-General within 20 days of receipt of the notice. |
| 3) | The Auditor-General must report any discharge of an auditor in terms of subsection (1) to the relevant legislature. |
| 27) | Duties and powers of auditors |
| 1) | An auditor ... must perform the functions of office as auditor in terms of section 20 of the Auditing Profession Act. |
| 2) | In performing those functions as the auditor of an auditee, the auditor has the powers assigned to the Auditor-General in terms of section 15 (of the PAA). |
| 3) | An auditor may consult the Auditor-General or a person designated by the Auditor-General concerning any matter relating to the auditing of the auditee concerned. |
| a) | must be given notice of every meeting of the auditee's audit committee, if the auditee has such a committee; and |
| b) | may attend, and participate in, any meeting of such an audit committee at the expense of the auditee. |
| 5) | The Auditor-General or a person designated by the Auditor-General may request information regarding the audit from an auditor ... |
| 28) | Audit reports and other reports |
| 1) | The report of an auditor ... must reflect such opinions and statements as may be required by any legislation applicable to the auditee which is the subject of the audit, but must reflect at least an opinion or conclusion on – |
| a) | whether the financial statements of the auditee fairly present, in all material respects, the financial position at a specific date and results of its operations and cash flow for the period which ended on that date in accordance with the applicable financial framework and legislation; |
| b) | the auditee's compliance with any applicable legislation relating to financial matters, financial management and other related matters; and |
| c) | the reported information relating to the performance of the auditee against predetermined objectives. |
| 3) | The auditor must submit copies of the audit report referred to in subsection (1) - |
| b) | if the auditee has an executive authority, to that executive authority for submission to the relevant legislature; |
| c) | to the Auditor-General; and |
| d) | to the National Treasury or the relevant provincial treasury, as may be appropriate. |
